IMF Emphasizes Price Stability for Central Banks and Assesses Global Economy
The International Monetary Fund stated that the disinflation process has slowed and called on central banks to maintain their price stability-focused policies.
During a press conference, International Monetary Fund Spokesperson Julie Kozack pointed out that the disinflation process has stalled and called on central banks to continue focusing on their price stability targets. Noting that the global economy remains on a 3 percent growth path, Kozack drew attention to the risks posed by high public debts and bond yields in advanced economies.
Stall in the Disinflation Process
International Monetary Fund Spokesperson Julie Kozack stated that the disinflation process, which began following the cost-of-living crisis in 2022, has experienced a certain amount of stalling.
In the evaluations made, it was recalled that global inflation has been revised to 4.7 percent for 2026, and central banks were urged to remain cautious.
Global Growth and Uncertainties
Despite ongoing conflicts in the Middle East and energy shocks, it was reported that the global economy has managed to remain resilient and maintained its 3 percent growth path.
It was stated that the global economy is being pulled in opposite directions under the influence of an energy-driven supply shock and an artificial intelligence-led demand shock.
Public Debts at Historical Levels
It was noted that the ratio of global public debt to Gross Domestic Product has reached approximately 100 percent, representing the highest rate seen since World War II.
It was emphasized that fiscal authorities need to prepare credible, medium-term consolidation plans aimed at reducing budget deficits.
Bond Yields and Emerging Markets
It was stated that the rise in benchmark borrowing and bond yields in advanced economies such as the US, France, and Japan creates additional pressure on developing countries.